Credit Access and Inclusion Act of 2025
- Bill Number
- H.R. 5402
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-06-30: Ordered to be Reported (Amended) by the Yeas and Nays: 28 - 23.
- Last Updated
- 2026-07-06T16:49:20Z
AI-Generated Summary
Purpose of the Legislation
The Credit Access and Inclusion Act of 2025 aims to update the Fair Credit Reporting Act (FCRA), a federal law that regulates how credit information is collected and shared. It clarifies and expands what types of payment information can be reported to consumer reporting agencies (CRAs, like Equifax or TransUnion) to help build credit histories for people who may lack traditional credit, such as renters or those paying utilities. This promotes greater access to credit for underserved consumers.
Key Provisions
- Definitions: Introduces terms like "energy utility firm" (companies providing gas or electric services) and "utility or telecommunication firm" (broader providers of services via pipes, wires, cables, or wireless/radio transmission).
- Reporting Permissions: Allows landlords, utility/telecom providers, or the Secretary of Housing and Urban Development (HUD) to share positive payment history with CRAs for:
- Rent payments under lease agreements, including HUD-subsidized housing.
- Utility or telecom service payments.
- Limitations on Reporting:
- Only payment-related details (e.g., timeliness, deposits, discounts, or service interruption terms) can be shared—not usage amounts.
- Energy utilities cannot report an outstanding balance as late if the consumer is complying with an agreed payment plan (e.g., deferred payments or debt forgiveness programs).
- Consumer Opt-Out: Individuals can request in writing to stop their information from being shared.
- Liability Protections: Updates FCRA rules to shield furnishers of information (e.g., landlords or utilities) from lawsuits related to good-faith reporting under this new provision.
- Government Study: Requires the Government Accountability Office (GAO) to report to Congress within two years on:
- The overall impact of this reporting on consumers.
- How reporting "cash flow data" (like regular payments) affects credit scores.
Significant Changes to Existing Law
- Previously, the FCRA limited what non-financial entities (like landlords or utility companies) could report to CRAs, often excluding positive payment histories for rent, utilities, or telecom services. This bill explicitly permits such "full-file" reporting to include these alternative data sources, broadening credit file contents.
- It adds a new subsection (f) to FCRA Section 623, which deals with responsibilities of information furnishers, and adjusts liability rules to cover this expansion without exposing reporters to undue legal risk.
- Introduces consumer protections like opt-out rights and restrictions on negative reporting during payment plans, which were not previously specified for these payment types.
Potential Impacts
- On Citizens: Could help millions of renters, low-income households, and those without traditional credit (e.g., young adults or immigrants) build stronger credit profiles by including on-time rent or utility payments. This might lead to better access to loans, mortgages, or apartments, but raises privacy concerns if consumers do not opt out.
- On Government Agencies: HUD may share data on subsidized housing payments, potentially streamlining credit access for public housing residents. The GAO's required study could inform future policy tweaks, adding workload to federal oversight.
- On Businesses and Lenders: Landlords, utility/telecom firms, and CRAs gain clearer guidelines for sharing data, possibly encouraging more participation. Lenders might approve more loans based on fuller credit pictures, boosting financial inclusion.
- International Relations: No direct impacts, as the bill focuses on domestic consumer credit practices.
Main Stakeholders Affected
- Consumers: Primary beneficiaries, especially renters, utility users, and those in subsidized housing who can build credit without traditional loans.
- Furnishers of Information: Landlords, utility/telecom companies (including energy providers), and HUD, who can now report data but must handle opt-outs and payment plan compliance.
- Consumer Reporting Agencies (CRAs): Will receive and process more diverse data, affecting how credit reports and scores are generated.
- Lenders and Financial Institutions: Benefit from more comprehensive credit assessments, potentially reducing lending risks.
- Government Entities: Congress (via the GAO report) and HUD, with indirect effects on financial regulators like the Consumer Financial Protection Bureau.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens FCRA's framework for financial inclusion by aligning it with modern payment realities (e.g., gig economy or rental-heavy lifestyles), but includes safeguards like opt-outs to address privacy under laws like the Gramm-Leach-Bliley Act (which protects financial privacy). No liability for compliant reporting reduces litigation risks.
- Constitutional: No major issues; it respects due process and privacy by allowing opt-outs and limiting reportable data, avoiding compelled speech or unreasonable searches concerns.
- Political: Supports bipartisan goals of consumer protection and economic equity, potentially aiding underserved communities. The GAO study ensures ongoing evaluation, which could lead to adjustments if unintended harms (e.g., to credit scores) emerge, reflecting a balanced approach to innovation in credit reporting.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (2)
Rep. Bynum, Janelle S. [D-OR-5], Rep. Vindman, Eugene Simon [D-VA-7]
Recent Actions
- 2026-06-30: Ordered to be Reported (Amended) by the Yeas and Nays: 28 - 23.
- 2026-06-30: Committee Consideration and Mark-up Session Held
- 2025-09-16: Referred to the House Committee on Financial Services.
- 2025-09-16: Introduced in House
- 2025-09-16: Introduced in House
Bill Versions
- Credit Access and Inclusion Act of 2025 — issued 2025-09-16 — PDF (5 pages)